Shares of a small-cap construction company gained as much as 7.36 percent on Thursday’s intraday trades to reach a fresh 52-week high of ₹ 368.55 apiece after the company bagged orders worth ₹ 3264.43 crore!
PNC Infratech informed the exchanges that it has signed a concession agreement with the National Highways Authority of India (NHAI) for three Hybrid Annuity Mode (HAM) highway projects for a bid project cost of ₹ 3264.43 crore on July 19, 2023. This involves the construction of a 6-lane greenfield Varanasi – Ranchi – Kolkata Highway in three packages. The projects are to be completed in 24 months upon the declaration of the respective appointed dates and have to be operated for 15 years post-construction.
PNC Infratech is a front-end infrastructure development, construction, and management company in India. It undertakes infrastructure projects, including highways, bridges, flyovers, power transmission lines and towers, airport runways, industrial area development, and other infrastructure activities.
With a market capitalization of ₹ 8,807 crores, PNC Infratech is a small-cap company. It has an ideal return on equity of 16.64 percent and a dividend yield of 0.15 percent. Its shares were trading at a price-to-earnings ratio (P/E) of 13.37, which is higher than the industry P/E of 8.51, indicating that the stock might be overvalued as compared to its peers.
The company’s promoters hold a 56.07 percent stake in it followed by mutual funds with 27.18 percent, foreign institutions with 10.26 percent, retail investors with 5.30 percent and other domestic institutions with 1.19 percent.
Written by Simran Bafna
